News
08.05.2009
Belarus to maintain stable work of sugar mills
Measures will be taken in Belarus to maintain the stable work of sugar refineries, Deputy Prime Minister of Belarus Ivan Bambiza and Aid to the President of Belarus told Belarusian leader Alexander Lukashenko talking about the state and prospects of the sugar industry of the country, BelTA learnt from the presidential press service.
Alexander Lukashenko gave several instructions to develop the sugar industry in Belarus. The 2005-2010 sugar industry development programme is being implemented in the country. The programme is designed to boost the raw materials base and enhance the production capacities of sugar mills. Since the programme was launched, the sugar beet production has doubled, from 1.9 million tonnes to 4 million tonnes. In 2009, Belarus plans to produce 4 million tonnes of sugar beet.
There are four sugar refineries in Belarus: in Zhabinka, Gorodeya, Slutsk and Skidel. In 2009, they plan to turn out over 500,000 tonnes of sugar.
All these enterprises have been substantially modernized. In 2008 alone, they sold products worth Br1.4 trillion, of which $123 million was received from exports.
“This is enough to satisfy the domestic demand for sugar and sell products abroad, including to the Russian Federation where 150,000 tonnes of sugar are to be exported in 2009,” Ivan Bambiza said.
Yet, during the global financial crisis, some problems with stable operation of three of these companies emerged.
Big funds were raised to implement investment projects at these companies. In 2005-2008 around Br160 billion was supposed to be allocated for the upgrade projects. More than Br350 billion was used in fact. Mainly these were own funds of the companies and bank loans. Considering today’s financial and economic conditions and the bank debts it has become increasingly difficult for the companies to grow further.
Support measures to the sugar refineries were discussed on May 7. Alexander Lukashenko has approved the government proposals on this issue.
As the sugar refineries are located in small towns and are town-forming, the issue of providing support to them is getting very important. The jobs and wages of local residents depend directly on how stable these companies are.
The flax industry performance was also discussed during the meeting. Last year, the target on flax fibre production (60,000 tonnes) was met. The President was informed that there were some difficulties and that the government was taking efforts to solve these problems.
BELTA
